Were using a vm-ware esxi-host on our local server that runs an instance of windows-server 2012-r2. Were remotely controlling over VNC or VMware Remote Console. We want set the server resolution to 1920x1080 because VNC and remote Console use the servers resolution but the option is not available.
Have you tried adding more virtual video memory to the Virtual Machine? I'd boost it up to 128mb I had a similar issue.
Your VM graphics adapter needs more RAM, as ag12 mentioned, but 128mb is overkill. VMware's ram-calculator tool (which is right there on the video adapter settings in ESXi 5.5+) suggets 8.9mb (default is 4mb on new VMs).
I tried 16mb of ram and it was more than enough for 1920x1080 resolution.